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MFA Submits Comment Letter in Response to SEC Proposed Rule on Beneficial Ownership Reporting

MFA submitted a comment letter to the Securities and Exchange Commission (SEC) in response to its proposed rule on beneficial ownership reporting. In the letter, MFA explains that:

  • The Commission’s proposed rule will harm activist investors’ ability to hold corporate management accountable.
  • The unintended consequences of shortening the filing deadline for Schedule 13Ds and 13Gs outweigh any benefits.
  • The Commission’s proposed change to the definition of “group” will chill investor communications and undermine investor engagement crucial to the market.
  • The Commission should reconsider the proposal to expand beneficial ownership to include cash-settled derivatives.